Hey 4now:

How are you? Since you are the ILW tax guru, I wondered if you could answer a simple tax related question for me.

I have a DBA, in which my alien ex-husband was 50% partner for tax year 2003. The entity was never set up as a partnership, in fact in prior years, all we did was take the net profit for the entity from the Schedule C and record it as additional marital income on the 1040. Well, for this tax return period, 2003, I must file as married but separate. So, how do I record my respective 50% share of that income? Unless, I am missing something I don't see where that is possible on the Schedule C or 1040!

4now:

I failed to mention that the DBA was in my name alone until the DBA was renewed (in this state that occurs once every five years) This occured on May 1, 2003 at which time my husband wished his name to be added to the DBA, which then altered the sole proprietorship (DBA) into a "husband-wife" entity. I realise that a husband wife entity should be dealt with as a partnership, and file a 1065 and then an individual K-1 for each partner is issued relative to his or her basis. But what I am struggling with is that since this occured mid-year, do I produce the 1065 from May 1 onward, and then treat the income from the entity prior to May 1 as a DBA and record income on a schedule C and add it to my 1040 net earnings? And also, since my husband never materially participated in the entity, but I did, then even though he has a 50% basis, for him any income would be from a passive activity (for me it would not) unless he had worked for more than 100 hours from May 1 until December 31..is that correct?

Hello Swiss

How are you. Havent been to the board lately. sorry. decided to pop in today and there you are.

Your plan sounds ok. If you and husband could agree.. You actually could both file schedule C cutting everything down the middle 50%. (save expense of 1065 preparation.) Or as you said.. file 1065 for those months and generate K-1 for both of you. Be aware that K-1 is subject to self employment tax just like the schedule C. for both. This is not passive income for him. He was taking a draw during this period.. correct?. This is not set up as a S-corp where portion can be passive. this is not rental/royalty income for him.

If he did not actively work the partnership you may want to look into dissolving such. Should be working partner to get draw/pay.

I will check back late tonight if I get a chance.

Take care Swiss.

Hey buddy, thanks for answering. Hope you are well.


Actually, I thought it would be passive for him and not for me. The reasoning for this was:
PASSIVE:
1. He was a paid employee, but did not receive any remuneration as a partner, nor did he make any partner draws during that period
2. He did not "materially" participate in the entity = no capitol provided by him

NON-PASSIVE:
1. I capitolized the entity
2. I provided unpaid services for more than the 100 hour requirement.

If this is not actually set up with IRS as a partnership, does it have to be an S-corp, for it to be passive for a partner? Not able to pay for an accountant at this juncture, so I am wading through this one blind. Am I right, or can you get me straight??

I tried to email you but I guess don't have your accurate email address- if you wish you can email me swissnut2000@yahoo.com.

This message has been edited. Last edited by: swissnut,

Please email me soon 4now. I've been waiting for you for sooooolong. I've cheese ( ) ready for you in my coffee shop. As well, I'm desperate for something else too.

swiss-bolt-nutt-wrench-hammer-screw:

do you not have anything better to do?

What could be better than somebody is screwing me up with hammer like wrench so that my nutt and bolt could be altogether and then my husband will be back to me to fuc..me up. And then I won't be so disperate for other men from this forum.

so you have decided I am female, after all.

what husband, by the way?

Have I ever had any discussion with you before to figure it out whether you are a male or a female? I don't remember though unless you can sharpen my memory as you are always well known to do so (obviously mistakenly). Though, there is no doubt in my mind that you are in between, neither a male nor a female.

In-between, hmmm. So could I be an hermaphrodite? The best of both worlds?

P.S. I don't think you and I COULD have a conversation, but if you are so keen to know what I am, email me, and I will send you a link so you can find out for yourself.

This message has been edited. Last edited by: swissnut,

Hello Swissnut

Looks like you have a stalker..oops I mean admirer. This is scary.

No Swiss, passive is not relative to your operation at all unless it was S Corp. and it is too late for that. Now you say he was a paid employee. so you gave him a w-2. The W-2 was from the corporation (C) is that correct?

There is not any way that this income earned could be passive. it does not fit the description. it is all for profit and subject to self employment tax. Do you think if a partner in a profit business can escape self employment tax by saying they didnt participate? IRS wouldnt be able to make any money, and all would have free ride from SE tax. In the S corp this used to be fashionable for person to take salary on w-2 and take out the rest of profits on k-1 as passive income (not subject to self employment tax) ex. take 20k on W-2 and 80k as passive. The IRS got smart to that and clamped down on the S corps big time.

It sounds like you really did not have a partnership in any fashion. verbal or written. He didnt receive any draw or participate. If you received all the income and he had no dealings. you should file the schedule C for the year solely. or at least figure your tax that way.. file an extension and send your payment with the extension so you wont have penalty.

if you need to discuss further.. lmk and i will email you. am real busy right now, but I will do best I can to make time 4U.

4now:
thanks for the tips.
Ok to be clearer, husband received wages on a w-2, already provided in January. Then he is also 50% owner just like I am ( but I did not have employee status). Now at year end, the company made profit, but he was only working there for a half year until June- then he disappeared. So how do I show his part of the profit? On a K-1?

Who is even having a converstaion with you? And why would I even try to have conversation with you? A stinky oldie-moldie. I am not a homophediatic like you, nor I'm psychopathic like you.

You wanted me to email you so that you can manipulate me too like you did with others for your desparate thirst. How many more people do you want to email you to satifsy you all the way there? Are you that desperate to have "goodie"?

Swiss

He was just an employee. nothing more based on what you have said. You are not incorporated.. is that correct?

4now;
He was an employee, plus we had a written P-ship Agreement, since inception, that he has 50% interest in the entity. We treated the entity as a DBA for the first 5yrs, listed in my name alone. So to answer your question, no, it was never a Corporation. Since renewal of the DBA in May 2003, he wanted his name placed on the DBA so, according to what I have read from IRS, this means that the entity is currently a "husband-wife" operation and should be treated as a Partnership. Am I right?

The wages he earned until termination of his working duties have already been taken care of on a W-2, but he still is a Partner (by extant written Agreement) until I dissolve it.

Wondered if I could dissolve the Partnership, since he has entered into a competing business, but that really is not germane to year 2003 anyway. My dilemma is that we are now filing year 2003 tax return separately, so I need to mail him something which demonstrates his 50% of that profit, so that he can report it on his separate tax return.

This message has been edited. Last edited by: swissnut,

swissnut-"t":

What the d-i-c-k-ens is "homophediatic" ?

P.S. I am not desperate for anything, and FYI, "good" is a relative term.

I KNEW some idiot would mess up such an informative thread.

"I've cheese?" Not even proper English!

If you are not "that" desperate for "goodie" after being dumped then why do you get men from this forum for se x? How easily have you forgotten saying before that you did have a relationship with a person from this site.

Did you also forget defending so furiously someone's se xual preference a while back? Otherwise, one has to wonder how can you make a so-sure judgment on someone's s exual preference without having been slept with that person first? It won't cut it off here. A psycho and nymp ho.

Swissnut:

Although I am not very fond of you, and you know this very well, yet I thought this impostor is little bit too annoying and should be shed some light upon.

Listen:

This is what I would do to figure him/her out:

Look for the TIME patterns of the posts of this "nuttt", "bolt" or whatever else he claims to be.

Check his time patterns and compare those to the time patterns of other people who posted at similar times.


You will then have no more than several other members who posted around the same timeframe.

Next, you deduct ones you know for sure wouldn't do this kind of "joke" from those who could have come up with such an imbecile, childish idea of harrassing you or anyone else by using similar nickname.

For example if you see that Michael and Still Learning have posted right after or before this imbecile, then you would know for sure that it is not Still Learning but rather someone else who could have done such thing.

And don't look just in one thread: but check the time patterns of his/her/its posts, and then look through other, unrelated threads to find who else was posting on this board while he/she/it did.

Finally, if this IS an impostor who also has a regular nick here, then chances are that you will find out with some degree of accuracy who is hiding behind it.
Grammar and structure of his/her/its sentences should be examined too: are his/her mistakes "natural" or is he/she pretending to have a bad grammar? (for example: if he/she writes some relatively simple words in wrong way, while spelling more complicated ones accurately, and also constructs the sentence that is too good for someone of his level of proficiency to accomplish,then you have a red flaf there. Also, a thought pattern: what kind of judgement/taste/intelligence he/she reveals in its posts.
Add this all together and you will have some picture to look at).

You may also discover that it is not a former member of this forum at all, but someone who has emerged recently and has some very specific and very foolish purposes known only to him/herself.

Anyway, I know it sounds like a lot of work, but if you want the simplest way to figure him/her out then consider my advice in doing so.

And remember: there is NO DECEIT that can not be penetrated and seen through.
It's all matter of the EYES.

Have a good day.

This message has been edited. Last edited by: E.,

E;

Thank you for the tips...but the truth is that I do not care who this imposter is. It is neither worth my time, nor effort. I can state with great confidence that the imposter is NOT one of my friends from this forum - and that is really the ONLY important issue to me.

You stated that you are not fond of me. You are, indeed, entitled to your opinion, but quite frankly, I cannot fathom why or how you have determined such. I have no issues with you. Perhaps your antagonistic feelings towards me can only be attributed to the difference in our respective personalities.